Wang Zhaowen, spokesman for the Bank of China, told Xinhua on Wednesday that news reports chronicling the bank's involvement in the US mortgage crisis contained statement which were both inaccurate and "inconsistent with the truth."

 

The relevant information would be contained in the bank's first-half financial report to be released in mid-August, Wang said, adding that any information from other sources would be unreliable.

 

He said the bank would not divulge any essential information about its dealings prior to the release of the report in line with relevant laws and regulations.

 

The world market is currently aflutter over the domino effect of the risky US mortgage-backed securities, as a couple of companies and hedge funds offering such services to sub-prime lenders in the United States saw the value of the assets underlying the bonds they hold fell sharply in recent months.

 

An earlier AFP report stated that the bank had pumped several billion US dollars into mortgage-backed securities and that it would face millions of dollars in losses, citing Zhu Min, vice president of the bank.

 

Other Chinese banks such as the Bank of Communications, the Bank of Construction and the Industry and Commerce Bank of China are also involved in US mortgage-backed securities but less so than BOC.

 

(Xinhua News Agency August 9, 2007)